Page 69 - GSTL_2nd April 2020_Vol 35_Part 1

2020 ] DEPARTMENTAL CLARIFICATIONS C5
(ii) Is the trans- No. The transferor is required to file FORM GST ITC-02
feror required to only in those States where both transferor and transferee
file FORM GST are registered.
ITC-02 in all
States where it is
registered?
b. The proviso to Yes, the formula for apportionment of ITC, as prescribed
rule 41(1) of the under proviso to sub-rule (1) of rule 41 of the CGST
CGST Rules Rules, shall be applicable for all forms of business re-
explicitly men- organization that results in partial transfer of business
tions ‘demerger’. assets along with liabilities.
Other forms of
business reorga-
nization where
part of business
is hived off or
business in trans-
ferred as a going
concern etc. have
not been covered
in the said rule.
Wherever busi-
ness reorgani-
zation results in
partial transfer of
business assets
along with lia-
bilities, whether
the proviso to
rule 41(1) of the
CGST Rules,
2017 shall be
applicable to
calculate the
amount of trans-
ferable ITC?

c. (i) Whether the No, the ratio of value of assets, as prescribed under
ratio of value of proviso to sub-rule (1) of rule 41 of the CGST Rules, shall
assets, as be applied to the total amount of unutilized input tax
prescribed under credit (ITC) of the transferor i.e. sum of CGST,
proviso to rule SGST/UTGST and IGST credit. The said formula need
41(1) of the not be applied separately in respect of each heads of ITC
CGST Rules, (CGST/SGST/IGST). Further, the said formula shall also
shall be applied be applicable for apportionment of Cess between the
in respect of each transferor and transferee.
of the heads of

GST LAW TIMES  2nd April 2020  133